Businesses seeking funding on the Equity Portal platform are required to disclose certain information to potential investors, including general information regarding the company and its officers and directors. Furthermore, the business must offer information regarding its plans for the money that it raises and the amount the business is seeking to raise. There must be information regarding the offering’s deadlines, the risks associated with investments in this type of business, and certain financial information of the business.
The type of financial information that a business must disclose depends on the business’s past raising practices. The figures below detail what financial information a business is required to disclose based on the type and amount of raise:
To assist investors in the due diligence process, each business’s website typically offers a discussion forum that allows potential investors to ask questions and receive additional information if necessary.
Large public companies are regulated by much stricter disclosure rules than the private small businesses on the Equity Portal platform. For these private small businesses, further updates will be provided on the company’s website when their offering has closed. It is expected that these updates will be less informative than those provided by public companies to their shareholders. Once you have closed on your investment or the offering has been closed, Equity Portal will no longer be responsible for or offer updates regarding the business.